Divi’s Labs reported 21.01% increase in the Sep-20 quarter top line sales revenues at Rs1,749.30cr. The pharma business across India managed to hold steady in the midst of the pandemic and also saw a demand boost. The revenue growth of Divi’s has been specifically strong as its focus is largely on the API segment.
For the Sep-20 quarter, the operating profits were up 52.9% at Rs680.01cr. This is largely on the back of higher sales absorbing fixed costs lower cost of materials used. This resulted in the operating margin or OPM expanding from 30.76% to 38.87% in the Sep-20 quarter.
Profit after tax (PAT) for the Sep-20 quarter was up by 45.6% to Rs519.59cr. The company took at Rs16cr hit on profits in the Sep-20 quarter due to forex losses. The PAT margins for the quarter expanded but from 24.68% to 29.70% in Q2.
Financial highlights for Sep-20 compared yoy and sequentially
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Divi's Labs |
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|
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|
Rs in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
1,749.30 |
1,445.57 |
21.01% |
1,730.47 |
1.09% |
|
Operating Profit |
680.01 |
444.63 |
52.94% |
643.88 |
5.61% |
|
Profit After Tax (PAT) |
519.59 |
356.78 |
45.63% |
492.06 |
5.59% |
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|
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|
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Diluted EPS (Rs) |
₹ 19.57 |
₹ 13.44 |
|
₹ 18.51 |
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Operating Margins |
38.87% |
30.76% |
|
37.21% |
|
|
PAT Margins |
29.70% |
24.68% |
|
28.44% |
|
Key takeaways from the Sep-20 quarter results
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The last few quarters have been extremely strong for the active pharma ingredients or API business which Divi’s specializes in. This segment showed strong demand as an alternative to China and also prices went up sharply as pharma companies across the world started to stock up on APIs.
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The net cash flow generated from operations was up nearly 3-fold yoy at Rs1,157cr in H1 on the back of higher pre-tax profits and better working capital flows.
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